More evidence that the economy continued to chug along came last week when the Institute for Supply Management said its non-manufacturing index jumped 110 basis points from January to February, and reached 57.6%. For context, any rating above 50% means more businesses are expanding. The 57.6% rating was the highest since October 2015, and the expansion of 16 of the 18 sectors was the highest number since the middle of 2014.
In broader news, the S&P 500 finished with its sixth-consecutive weekly gain, and the Dow tallied its fourth-consecutive weekly gain. All that aside, there were some major headlines and moves in the markets this week. Let’s hit some highlights.
If you’re an investor, or just casually follow the markets, chances are you heard about Snap Inc.’s (NYSE:SNAP) successful IPO on last Thursday. The company announced a day prior to the IPO that it would sell 200 million shares for $17 per share, which was the largest U.S. IPO since 2014. Although the company has never turned a profit, investors jumped on board the IPO wagon, sending its shares up 44%, to $24.48, when shares hit the market on last Thursday.
The IPO made a lot of people rich, including Snap CEO Evan Spiegel, who sold at least $272 million worth of shares and still owns roughly $3.6 billion, according to MarketWatch. Snap’s IPO raised almost $2.5 billion for the parent company and another $1 billion for the founders and early investors.
But now the real work begins, because Snap just as easily could go the way of Twitter, which declined consistently after its IPO, rather than Facebook, which became a tech juggernaut in the years following its IPO. Snap has roughly 158 million users — mostly between the ages of 18 and 24 — and is growing.
Now, it’s just a matter of if and when Snap can better monetize its growing user base consistently. This is a task much easier said than done — just ask Twitter.Tags: ipo, snap